Study Abroad Loan without Collateral: Prodigy vs MPOWER vs Leap Finance (2023)

Last Updated on November 14, 2021

This is the time when a majority of study abroad aspirants would have received the offers for the fall intake. As always, the study-abroad financing part still remains a major concern for international students. Scholarships and financial aid are extremely competitive and might not cover the whole expenditure. Education loans are quite handy in such cases. But, the traditional banks would demand full collateral security. In this article, we will look at how to avail of a study abroad loan without collateral to study abroad. Additionally, we will look at the major new-age financial services companies that offer the best loans without collateral for study abroad.

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Table of Contents

Study Abroad Loan without Collateral and Co-Signer

Traditional banks ask for co-signer (or guaranteer) and full collateral. Additionally, you may also find you can’t secure the full cost of attendance through a bank loan even with a prohibitively high-interest rate. So, what to do? Here comes the new-age fintech players like Prodigy Finance, MPOWER Financing, and Leap Finance.

Unlike traditional banks, these new-age fintech players (non-banking financial institutions) provide education loans without collateral and co-signer on the basis of your earning potential after the completion of the program.

(Video) Prodigy vs Leap finance || Without collateral || Without co-applicant || Advantage || Disadvantages.

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Prodigy Finance

Prodigy Finace was started as a small community in 2007, to finance the accepted students at INSEAD. Funds were crowdsourced from alumni, financial institutions and socially-aware investors to support students who often experience difficulties securing sufficient educational loans in their home or host countries.

Prodigy Finance lends loans to students from 118 countries for studying abroad across the world. However, the university has to be a partner one. At present, they support over 750 universities in 18 different countries for Business, Engineering, Law, Public Policy, and Medical programs at the Masters level. and are expanding all the time.

There will be an 8.9% annual simple fixed margin plus a variable baserate(3-month USD LIBOR of 0.2% as of 1st January 2021) 10%Prodigy FinanceAPR includes the effects of allfinancingcosts (including the impact of admin fee of 5% of the totalloanamount). Repayment starts after 6 months of finishing the course.

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MPOWER Financing

MPOWER Financingis aPublic Benefit Corporationand was started in 2014. MPOWER Financing lends to students who are within 2 years from graduation and uses a proprietary credit model that considers borrowers’ academic success and career path.

The company lends to 190+ nationalities, including Americans. MPOWER Financing’s services are available at 350 university and college programs in the US and Canada.

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(Video) International Student Loan: MPower & #ProdigyFinance foreign education loan (Part 2) | Ep #10

MPOWER Financing offers 10-year, fixed-rate loans ranging from $2,000 to $50,000and charges an administrative fee of 5%, which is added to the total loan amount. Interest rates range between 7.99% and 13.99%and can go down as low as 6.49% after interest rate discounts.

Students need to pay the interest while attending the university. This reduces the student’s total interest burden (because the interest does not capitalize) and helps them to build a credit score while they are in school. Additionally, there is a grace period of 6 months after graduation.

The funds can be used for tuition fees, housing, meals, health insurance, and other expenses certified by the university. MPOWER reports student payments to the U.S. Credit Bureau, which helps international students build a U.S. credit history.

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Leap Finance

Leap Finance was launched in 2019, with a goal to provide affordable student loans with lower interest rates. Currently, it provides education loans to Indian students for STEM studies at the Masters level in the US.

Indian candidates can avail themselves of the loans to attend 2200+ programs at 209 schools at 93 universities across the US. The 13 eligible states are Texas, Arizona, New York, North Carolina, Ohio, Florida, Georgia, Illinois, Massachusetts, Utah, Virginia, New Jersey, and Wisconsin.

Leap Finance funds up-to 100% of your cost of attendance, which typically includes tuition and fees, books and supplies, room and board, transportation and personal expenses.

A co-signer is not required. However, a cosigner’s credential may result in better loan terms like lower interest rates. Leap Finance does not evaluate the co-signer in their ability to service the loan as the loan is sanctioned based on the student’s merit (including GRE scores, overall academic performance history, and even work experience) and future earning potential.

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(Video) Student Loan for International Students | Prodigy Finance Honest Review

Leap Finance charges a processing fee of 2%. The interest rates vary between 7.99% and 9.99%.

Students need to pay the interest while studying. During the 6-month grace period, a token amount (say, INR 5,000 per month) needs to be paid as well.

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What is the advantage of Taking Study Abroad Loans from Prodigy, MPOWER, or Leap?

It’s true that there are certain disadvantages. Here are the key ones:

  • Loans can be availed only for partner schools and designated programs
  • Limited study abroad destinations
  • You have to attend a top or Tier-1 university abroad in order to be eligible
  • High-interest rates

By student loan standards, they’re high, but they’re better than the alternative, which might be a loan from a home country that could involve putting up collateral, such as a house.

Anna Helhoski, NerdWallet

Yes, the key advantage is that you do not require collateral or a co-signer. It’s actually a great attempt to diminish the economic barrier. You will be granted a loan solely on the basis of your academic merit and potential.

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(Video) Why should you choose Leap Finance | Student Testimonial

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Secondly, you can avail the loan in the foreign currency (in USD). This is something I can related personally very much.

During my Masters studies in the UK, when I had borrowed the loan amount, it was 1 GBP ~ INR 78 – 80. Later, when I had started repaying back, in the first two years, it was 1 GBP ~ INR 66/67. I had to pay ~ INR 1.5 – 2 Lacs more due to currency value fluctuations.

I had taken my education loan from SBI. Back in those days, interest rates were in the range of 11 – 14% for abroad education loans. So, if you are aspiring to attend a top-tier school and looking for a study abroad loan with collateral, these are actually good options.

So, which is the best among Prodigy Finance, MPOWER Financing, and Leap Finance?

Well, like choosing universities, there is nothing called best. All you need to do know is choosing what’s right for you. Here is a quick summary on Prodigy Finance vs MPOWER Financing vs Leap Finance.

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Prodigy Finance vs MPOWER Financing vs Leap Finance

Prodigy FinanceMPOWER FinancingLeap Finance
Eligible Countries18 Countries including the popular study abroad destinationsUS and CanadaUSA
Eligible ProgramsCheck HereCheck HereCheck Here
Eligible LevelMS/MBAMS, MBA and UG (Final 1 - 2 Years)MS
Minimum Loan Amount (USD)$15,000$2,000$10,000 - $40,000
Interest Rate (Appx.) and Type9% - 10.5% [Variable-Rate Loan]7.99% - 13.99% (it could be as low as 6.49%) [Fixed-Rate Loan]7.99% - 9.99% [Fixed-Rate Loan]
Admin Fee5% of the loan amount5% of the loan amolunt2% of the loan amount
Maximum Loan Amount80% - 100% of all expensesUSD $50,000Full expenses
ProsSimple interest; offers loans for Non-STEM Programs and outside US/Canada too.Interest rate discounts and UG students are eligible as wellFixed-rate loans at comparatively low-interest rates
ConsNo fixed-rate option; and only PG programs (MS/MBA)Low-loan maximums and high-interest ratesLoans for only MS STEM programs in the US

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As you can see that you have to get an offer from one of the top universities in order to get a study abroad loan without collateral. So, if you need help with study abroad queries – profile building, application strategy, etc., please feel free to book an online counselling session (30/60 minutes) with our experts. You can also avail of our admission counselling services for UG, MS, and MBA.

Related Articles:

How to Finance Your Education and Save Money While Studying Abroad – Tips by Top Financial Analyst

(Video) Worried About Managing Money For Study Abroad? Watch This!

6 Ways to Finance Your MBA in the US

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References: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12.

FAQs

Which is better leap finance or Prodigy? ›

I got loan approval from leap finance @9.25% rate of interest processing fee 2% tenure 10 years for $50,000 amount.. Whereas in prodigy finance a amount of $30,000 was offered for me when I kept the amount for $50,000 .. but the floating interest rate was 8.2 or 8.3% for a tenure of 15-20 years , processing fee @ 2%..

Which bank gives highest education loan without collateral for abroad? ›

Top Lenders to Apply for Education Loan without Collateral

Public banks like SBI, Bank of Baroda, etc offer applicants with a loan of upto 7.5 Lakhs without collateral. Private banks like Axis Bank, ICICI Bank, HDFC, etc offer students a loan amount upto 40 lakhs without collateral.

Is leap finance good for loan? ›

Leap Finance provides highly safe and reliable education loans to Indian students headed abroad for higher education. They currently provide graduate student loans to Indian students who are enrolled at American and Canadian universities.

Which loan is best to study abroad? ›

Top Education Loan Providers in India to study abroad
Name of BankLoan AmountRate of Interest per Annum
State Bank of IndiaUpto 1.5 crores10.5%
Allahabad Bank50 lakhs7.15% to 10.5%
Axis Bank40 lakhs and beyond depending on requirementUpto 4 lakhs- 15.2% Upto 7.5 lakhs- 14.7% Above 7.5 lakhs- 13.7%
HDFCUpto 30 lakhs14%
8 more rows
26 Sept 2022

Does leap finance require collateral? ›

Though Leap finance has simplified the loan application process and since we do not require collateral, lesser documents are required to sanction the loan.

Does Prodigy Finance require collateral? ›

The short answer is - no! Prodigy Finance does not require any collateral or a co-signer for our loans. We assess affordability based on your future earning potential and not only on your credit history. This means you don't need a co-signer or collateral in order to apply for a loan.

Is Mpower finance legit? ›

MPOWER Financing Reviews FAQs

MPOWER Financing has an overall rating of 4.1 out of 5, based on over 54 reviews left anonymously by employees. 76% of employees would recommend working at MPOWER Financing to a friend and 77% have a positive outlook for the business. This rating has been stable over the past 12 months.

Which private bank is best for abroad education loan? ›

Top Banks with Interest Rates Offering Indian Students an Education Loan
Indian Public / Private BanksInterest RatesLoan Tenure
Indian Public Banks
SBI Education Loan8.65%15 + 1 years
Axis Bank Education Loan13.7% to 15.2%15 years
Bank of Baroda Education Loan7.85% to 9.85%-
6 more rows

Can I get 20 lakhs abroad education loan without collateral? ›

20 lakh for programs abroad. According to the rules, collateral security is not needed for loans up to Rs. 4 lakh. Only when the loan surpasses a predetermined sum determined by the bank will collateral and a third-party guarantee be necessary.

How much is the processing fee for leap finance? ›

Leap Finance charges a processing fee of only 1-2% of the education loan amount. The processing fees are only charged when you request for funds. That's it. You're done.

Which loan provider is best? ›

Top Personal Loans Plans in India
  • HDFC Bank Personal Loan. 10.50% p.a. onwards.
  • ICICI Bank Personal Loan. 10.50% p.a. onwards.
  • Bajaj Finserv Personal Loan. ...
  • Fullerton India Personal Loan. ...
  • IndusInd Bank Personal Loan. ...
  • Kotak Personal Loan. ...
  • Standard Chartered Personal Loan. ...
  • Cent Personal Loan (Central Bank of India)
15 Nov 2022

Is leap interest rate fixed? ›

Leap Finance offers interest rates which is one of the lowest in the industry. Our interest rate ranges between 8.25% - 10.25%. Also, Leap Finance interest rates are fixed unless other international lenders to avoid all the uncertainty during repayment.

Which bank has lowest interest rate on education loan for abroad? ›

Central Bank of India provides education loans to students to study in India and abroad with interest rates starting from 6.85%. The bank also offers concession rates for female students. Students can get generous loan amounts that help them cover all the expenses related to the courses. Interest Rates (p.a.)

Can I get student loan without collateral? ›

Both public and private banks give education loan without collateral. The difference is the loan amount. Public banks give maximum of INR 7.5L while Private banks can lend up-to INR 40 Lakhs. Also there is an option to go with NBFCs which works same as private bank.

Which country is best for money for international students? ›

The following countries will make it easy for international students to earn some extra money during their studies.
  • 10 best countries to study and work. Rank. ...
  • Study in Spain. ...
  • Study in Germany. ...
  • Study in Russia. ...
  • Study in New Zealand. ...
  • Study in Switzerland. ...
  • Study in France. ...
  • Study in Australia.

Is LEAP scholarship genuine? ›

They provided everything like mock tests, study materials and live classes in just 149 rupees. I would like to personally recommend Mohd Shees sir for his excellent guidance. Yes, Leap Scholar is very reliable in terms of their services.

Who is the owner of Leap scholar? ›

Arnav Kumar - Founder - Leap Scholar | LinkedIn.

How can I get a loan for MS in USA without collateral? ›

Follow 3 simple steps and get an instant education loan for MS in the USA without collateral.
  1. Fill a loan application form online on LeapFinance.
  2. Get an instant loan offer and repayment interest and accept it.
  3. Talk to our team and sign your contract after submitting all your documents.

Does Prodigy Finance require credit score? ›

Don't worry - many of our customers do not have a credit history, and it isn't a requirement for our loans. If you've never taken out any credit before you will still be able to retrieve a form of confirmation from your credit bureau agency stating that you do not have any credit history.

How much can you borrow on Prodigy? ›

Graduate Student Loans
Variable APR9.54% and up
Loan Amounts$15,000 to 100% of total cost of attendance
Loan Terms7-20 years

Does Prodigy have processing fee? ›

Prodigy Finance processing fee

Prodigy Finance charges a whooping processing fee of 2.5%-4% of the sanctioned loan amount. This is a very high figure when compared to government banks.

Is MPOWER loan hard to get? ›

MPOWER Financing is one of the few that doesn't require a cosigner or a strong credit history. For international students without a supportive network, MPOWER Financing can be a useful option. However, its loans have high interest rates and fees, and it has limited repayment options.

Does MPOWER check credit score? ›

MPOWER does not require a credit score or history, but we do review any existing credit history in the U.S. and your country of origin, if available.

Who is eligible for MPOWER Financing? ›

What Are the Eligibility Criteria For An MPOWER Financing Education Loan? An undergraduate or graduate student within 2 years of graduating or admitted to a 2-year or a 1-year program. An international student, DACA recipient, a US citizen, or refugee or asylum seeker.

Can I get 40 lakhs education loan without collateral? ›

What is the maximum loan amount one can get for overseas studies? The max. education loan amount offered by Axis Bank is INR 40 Lakhs without collateral and INR 1 Cr. with collateral.

Which bank is best for international students? ›

Best Bank for International Students in USA
Name of Bank AccountEligibility
Wells Fargo Student Checking AccountCollege students aged 17-24 years.
HSBC USA International Student AccountInternational students studying in the US who are over 18 years old.
US Bank Student Checking AccountAvailable for international students.
7 more rows
27 Oct 2022

Which bank approves education loans easily? ›

Go to IDBI bank for an education loan if you have secured admission in any of the premier institutes and have adequate (1.33 times) collateral security for easy approval.

Can I get 25 lakhs loan without collateral? ›

You can opt for easy EMIs and conveniently repay your Rs 25 lakh Personal Loan over a pre-decided tenure. A Personal Loan is an unsecured product – you don't have to provide collateral. Therefore, the key requirement for banks to give you a personal loan is a good credit score and income stability.

What is the maximum education loan without collateral? ›

HDFC bank offers collateral-free loan up to Rs. 7.5 lakhs, above this amount the applicant needs to submit a collateral. Various options for collateral are available with the bank like residential property, HDFC bank Fixed Deposit, etc.

Can I get 7.5 lakhs education loan without collateral? ›

Collateral or security

Upto 7.5 Lakhs, Parents or Guardian is required as a co-borrower but no collateral security or third party guarantee is required. For loans above 7.5 lakhs, collateral is necessary and Parents or Guardian is required as a co-borrower.

Is it safe to take loan from Leap Finance Quora? ›

Their process is super easy and transparent. Very happy wid them. Everything happens online and you get a sanction letter within only 3 days. Also, they help you open US bank account from India only, you can also avail a credit and debit card.

How do I repay my leap finance loan? ›

Step 1: Choose the principal amount between 15000USD and 100000 USD. Step 2: Choose the Interest Rate between 8.5% and 10.95%. Step 3: Choose the tenure of repayment of the loan between 7 years to 10 years. Step 4: Select the duration of your course.

What is a leap loan? ›

The Leveraging Educational Assistance Partnership Program makes grants to states to assist them in providing need-based state grants to eligible students attending institutions of higher education. LEAP Program publications are listed below.

What is the smartest way to get a loan? ›

Fastest ways to borrow money
  1. Personal loan from an online lender. Compared to traditional lenders like banks or credit unions, online lenders boast convenience and speed given their fully online application and funding process. ...
  2. Loan apps. ...
  3. Cash advance from a credit card. ...
  4. Loan from family or friends. ...
  5. Pawnshop loan.
26 Oct 2021

What is the easiest type of loan to get? ›

The easiest loans to get approved for are payday loans, car title loans, pawnshop loans and personal loans with no credit check. These types of loans offer quick funding and have minimal requirements, so they're available to people with bad credit.

How much loan can I get on 50000 salary? ›

5,40,000. On the other hand, if you are wondering - how much personal loan can I get on a 40,000 salary, the loan sanction amount will be close to Rs. 10.80 lakhs.
...
Multiplier Method.
SalaryExpected Personal Loan Amount
Rs. 40,000Rs. 10.80 lakhs
Rs. 50,000Rs. 13.50 lakhs
Rs. 60,000Rs. 16.20 lakhs
2 more rows

Will interest rates fall again in 2022? ›

Mortgage rates could decrease next week (Nov. 28-Dec. 2, 2022) if the mortgage market takes a cautious approach to a possible recession. However, rates could rise if lenders account for the Federal Reserve continuing to take aggressive measures to counteract the high inflation of 2022.

Do you pay more interest in a leap year? ›

This interest calculation method takes the annual interest rate and (inexplicably) divides it by 360, then multiplies the quotient by the actual number of days in a month. Therefore, the result is that you pay an extra 5 days of interest each year (6 days in leap years).

How long should you hold a LEAP option? ›

Key Takeaways. Using long-term equity anticipation securities (LEAPS) with an expiration period of up to three years can be an alternative to buying stocks outright. Using LEAPS can result in huge returns, but they can be risky, and you'll have to roll the dice just right.

Which student loans are interest free? ›

If your loans are subsidized, you are not responsible for paying the interest that accrues while you're in school. If your loans are unsubsidized, you're responsible for all the interest that accrues, even while you're in school. Learn about the differences between subsidized and unsubsidized loans.

Which type of student loan has the lowest interest rate? ›

The interest rate on subsidized loans is one of the lowest you'll find, and no co-signer is required. All eligible undergraduate borrowers qualify and they receive the same rate regardless of credit history.

Which bank is best for non collateral education loan? ›

Some of the best lenders to apply for an education loan without collateral for abroad are:
  • Public banks like SBI, Bank of Baroda.
  • Private banks like ICICI Bank, HDFC Bank.
  • NBFCs like Incred, Auxilo.
  • Foreign lenders like Leap finance, Prodigy finance.

Do banks give loans without collateral? ›

Since Personal Loans are unsecured (without collateral or security) loans, banks will look at your income, cash flows, strength or stability of your business or employment to make sure you are able to repay the loan. HDFC Bank customers can get Personal Loans with minimal or no documentation.

Can I take 2 education loans at the same time? ›

Well, the answer to the above question is - Yes, a student can be eligible for a second education loan. For this, they can either apply for a second education loan from the bank they already have taken their first loan from or they can apply to a different bank.

What is the cheapest country to study abroad? ›

10 of the Most Affordable Places to Study Abroad
  • Germany.
  • France.
  • Mexico.
  • India.
  • Argentina.
  • Poland.
  • Malaysia.
  • South Africa.

Which country give easily student visa? ›

A: Undoubtedly, you need to put some effort to acquire a student visa for any country, however, the most prominent options to accomplish easy attainment of student visa as an Indian student are Australia, Canada, and New Zealand.

Which country has highest student visa success rate? ›

Australia is known as the best student destination globally because of its high-quality education, low cost of living and opportunities to work. Australia welcomes international students from all over the world, and the higher education system in Australia differs from other countries.

What is the best student loan app? ›

In India, mPokket, Pocketly, KrazyBee, KreditBee, Sahukar, SlicePay, CashBean, and BadaBro are the top personal loan applications for students. Students may apply for loans instantly using these applications.

What credit score is needed for proceed finance? ›

Proceed Finance approves loans for credit scores as low as 640. There is no down payment required. You can apply online in under a minute and will receive an instant decision in most cases.

What are the 4 types of student loans? ›

Keep in mind that all student loans, including federal loans, are money that you are borrowing to pay for school and must pay back with interest.
...
There are four types of federal student loans available:
  • Direct subsidized loans.
  • Direct unsubsidized loans.
  • Direct PLUS loans.
  • Direct consolidation loans.
16 Sept 2020

Who is the biggest lender of student loans? ›

Mostly the U.S. government. According to the office of Federal Student Aid, $1.62 trillion, or 93% of all student loan debt, is federal student loans.

Which app gives highest loan instantly? ›

Here is the list of the top 25 instant personal loan apps in India:
  • PaySense.
  • LazyPay.
  • Bajaj Finserv.
  • IDFC First Bank.
  • ZestMoney.
  • Dhani.
  • HomeCredit.
  • CASHe.

Does MPower Finance cover living expenses? ›

MPower Financing covers a host of expenses, including but not limited to, tuition fees, housing, living expenses, insurance, and books.

Which consultant is best for abroad study? ›

What Are the Best Study Abroad Consultants in India?
  • LeapScholar: Powering global education dreams with a team of study experts for multiple popular student destinations.
  • SI-UK: Helping students apply to UK's most popular universities.
  • Edwise: Overseas educational consultants and admissions guidance.
8 Sept 2022

Which is better LeapScholar or leverage Edu? ›

leverageedu.com had more total visits compared to leapscholar.com in September 2022.

Who is the owner of LeapScholar? ›

Arnav Kumar - Founder - Leap Scholar | LinkedIn.

Will my bank give me a loan with a 600 credit score? ›

While it is certainly possible to get a personal loan with a 600 credit score, having a score in the bad credit range does rule out a large chunk of the market. There are few major unsecured personal loan providers whose minimum credit score requirements are at or below 600, as most have thresholds between 640 and 700.

How much of a loan can you get with a 600 credit score? ›

How much of a loan can I get with a 600 credit score? Depending on the lender, you might be able to get a loan for up to $50,000 with a credit score of 600. One way to shop for amounts and rates is to apply using an online platform like Acorn Finance.

How hard is it to get a loan with a 600 credit score? ›

A 600 credit score is still considered "fair," so it may be possible to get a debt consolidation loan. In fact, there are often lenders that are willing to even work with borrowers with bad credit (considered a score of under 580).

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